Diageo sells-off Argentinian wine assets

Diageo Plc, the drinks maker behind such brands as Guinness and Johnnie Walker scotch whiskey has sold off more of its wine assets, this time to Grupo Penaflor, the largest wine producer and distributor in Argentina.

Diageo’s wine assets sold include Navarro Correas and San Telmo wine brands, complete with production sites and vineyards.

Grupo Penaflor is one of the top 10 wine producers in the world. The deal also includes a distribution agreement, which will see Grupo Penaflor distribute Diageo’s international spirit brands in Argentina, and after an “interim period,” will also produce and package Diageo’s domestic spirits brands in Argentina.

Most drinks majors have a portfolio of brands in some markets that are not known or sold internationally but are major sellers in their home markets.

Diageo said that the deal, which will close in early 2016, will result in a one-time pre-tax loss of €60 million.

The sale comes less than a month after Diageo sold majority of its wine interest in the U.S. and U.K. to Treasury Wine Estates, an Australian company.

Diageo has been selling off assets that it does not consider as core to the company as it tries to revive organic sales, which has been struggling against a slowdown in emerging markets.

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